MGT 4330 Test 4
Is the management of transportation activities and the flow of materials within a supply
chain to ensure adequate customer service at reasonable cost.
Logistics
Is a framework for understanding the scope of supply chain management (SCM) that is
based on five basic functions involved in managing a supply chain: plan, source, make,
deliver, and return
supply chain operations reference
Is the process of coordinating the physical flow of materials to ensure that the right parts
are available at various stages of the supply chain, such as manufacturing and
assembly plants.
supply chain integration
As the process of managing information, physical goods, and services to ensure their
availability at the right place, at the right time, at the right cost, at the right quantity, and
with the highest attention to quality.
value chain integration
Inventory turnover =
COGS / avg inventory
In your company, the inventory holding period is 46 days, the average collection period
is 35 days, and the average accounts payable payment period is 31 days. What is the
cash to cash conversion cycle in days based on this information?
46 days
81 days
50 days
102 days
What is one tactic to mitigate the risk involved with capacity risks?
Change order quantities
Schedule overtime.
Extra local warehouse space
Carry extra capacity
A(n) _________ is any entity—real or virtual—that coordinates and shares information
between buyers and sellers.
,intermediary
manufacturer
investor
franchisor
Managing supplier relationships involves:
having short term relationships with suppliers that are solely based on price.
an adversarial approach to the supplier.
establishing trust, openness, and honesty with the supplier
single sourcing suppliers.
Bragg Johnson, materials manager at Johnson & Sons, has determined that a certain
product experienced 3.4 turns last year, with an annual sales volume (at cost) of
$972,000. What was the average inventory value for this product last year? Round your
answer to the nearest dollar.
$255,882
$ 285,882
$288,882
$285,282
Which statement is true of order amplification?
Order amplification decreases as one moves back up the supply chain away from the
retail customer.
Order amplification in the supply chain leads to the bullwhip effect.
Increasing price fluctuations can help manage order amplification.
Large order sizes can help manage order amplification.
If an online retail store has cost of goods sold equal to $2 million, has 200 operating
days in a year, and has a total average on-hand inventory of $500,000, the cost of
goods sold per day is:
$7,500.
$2,500.
$10,000.
$15,000.
What is one tactic to mitigate the risk involved with inventory risks?
Increase lead times
Reduce lead times
Have multiple suppliers
Schedule overtime
, What is one tactic to mitigate the risk involved with product risks?
Cooperative plans to share resources
Better strategic planning and demand forecasting capability
Hedging inventory
Global legal team to defend infringement
________ inventory is inventory that has been ordered but is in transit.
Buffer
Pipeline
Anticipation
Decoupling
In the context of measuring supply chain performance, the goal of sustainability
measures is to:
have a carbon-neutral supply chain.
reduce the order cycle time for all customers.
minimize the time taken to fill a customer's order.
have a byproduct-free production process.
What is a disadvantage of vendor-managed inventory (VMI)?
VMI prohibits the use of customer information, which leads to poor control of inventory
and capacity.
VMI often results in higher customer inventories than necessary.
VMI prevents vendors from making production decisions using downstream customer
demand data.
VMI does not allow vendors to view inventory needs from the customer's perspective.
As an operations management consultant, you have been asked to evaluate a furniture
manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of
$22.9 million, cost of goods sold of $19.7 million, 32 operating weeks a year, total
average on hand inventory of $2,150,000, accounts receivable equal to $2,445,000, and
accounts payable of $3,755,000. What is the cash-to-cash conversion cycle in weeks?
Do not round intermediate calculations. Round your answer to one decimal place.
17.7
1.7
4.7
11.7
Logistics involves what primary responsibilities?
Awarding contracts for supplies, managing the transportation of goods through the
